Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

This new initiative, which I welcome, is recognition of the fact that Irish banks are not meeting the lending needs of the economy fully. A new initiative such as this one is necessary. I acknowledge the Minister's point that the initiative's announcement helped to promote a positive backdrop for Ireland as we exited the programme.

Have the Irish banks been involved in discussions on the arrangement with Irish officials? As they are the most likely delivery mechanism for KfW funding to SMEs, it is important that this matter be clarified. If they have not yet been involved, it could be some considerable time before the arrangement is up and running and available to SMEs, which have been inquiring about this issue. Many SMEs are paying exorbitant interest rates, have onerous conditions attached to their lending arrangements with Irish banks and have been refused new credit applications. They are looking to this initiative with some degree of optimism. It is important that we give them as much information as possible as to its shape, whether it is likely to benefit them and whether it will be administered through Irish banks, which are regulated in Ireland.

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